The golden rule in successful takeovers is not to impose the buyer's own ways, but combine the best practices of both companies, says UB chairman.

A series of acquisitions of global firms by Indian companies has raised the confidence of the average Indian businessman to also look overseas for similar takeovers, according to UB Group Chairman Vijay Mallya, whose own company has been in the news for buying out Shaw Wallace and French wine maker Bouvet-Ladubay.

"We have it in us, we have the creative talent, the entrepreneurial spirit. The confidence for takeovers abroad is growing day by day," Mallya said at the India Economic Summit.

Asked on pointers for successful acquisitions, Mallya said there were several do's and dont's, the primary rule being not to impose the buyer's own ways but combine the best practices of both companies.

He also alluded to cultural differences and language barriers in foreign acquisitions, saying that hard business issues were seldom reasons for an acquisition to fail.

"As long as there is mutual respect for people and culture, any acquisition can be made to work. When they do not work, it is usually due to factors like culture and language," Mallya said.

The liquor baron, however, had a word of caution, saying that factors like the Indian fiscal policies still restricted the size of overseas acquisitions. He said debt is classified as external commercial borrowings and when Indian companies borrowed in foreign currency, they had to repay through the same medium.

Mallya added that companies could not borrow against stocks, and sought for reforms within the system that would make acqusitions easier for Indian firms.

Responding to Mallya's statements, Ashwini Kumar, minister of state, department of industrial policy and promotion, said: "We have progressively liberalised policies and over time the ease of functioning and doing global business has been enhanced. This trend will continue going forward and the Reserve Bank of India will not stand in the way of Indian corporates."